Microsoft MB-700 Exam (page: 5)
Microsoft Dynamics 365: Finance and Operations Apps Solution Architect
Updated on: 12-Feb-2026

Viewing Page 5 of 42

Fourth Coffee plans to implement Dynamics 365 Finance and Dynamics 365 Supply Chain Management.

The company owns and operates the following divisions:



You need to ensure that Fourth Coffee can report financial results by division.

What strategy should you recommend?

  1. Create two legal entities, create one warehouse and associate the financial dimension to the warehouse.
  2. Create two legal entities, create one site and associate a financial dimension per company.
  3. Create one legal entity with two sites. Associate financial dimensions to sites.
  4. Create one legal entity with one site that has two warehouses. Associate the financial dimensions to the warehouses.

Answer(s): C


Reference:

https://www.nexsoftsys.com/articles/financial-dimensions-in-dynamics-365-services.html



Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

A company is planning to implement Dynamics 365 Supply Chain Management with three locations. Two locations must use United States currency (USD) as the default currency. The third location must use Canadian currency (CAD).

One US facility and the Canadian facility must use advanced warehouse functionality. The other US facility must use basic warehousing.

You need to configure the legal entity, site, and warehouse architecture to meet the requirements.

Solution: Create three legal entities, one for each facility.

Does the solution meet the goal?

  1. Yes
  2. No

Answer(s): A

Explanation:

Default currency is configured per legal entity. Advanced warehouse is configured per warehouse.



Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

A company is planning to implement Dynamics 365 Supply Chain Management with three locations. Two locations must use United States currency (USD) as the default currency. The third location must use Canadian currency (CAD).

One US facility and the Canadian facility must use advanced warehouse functionality. The other US facility must use basic warehousing.

You need to configure the legal entity, site, and warehouse architecture to meet the requirements.

Solution: Create two legal entities, one for advanced warehouse and one for basic warehouse.

Does the solution meet the goal?

  1. Yes
  2. No

Answer(s): B

Explanation:

You cannot have two default currencies in the same legal entity.



Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

A company is planning to implement Dynamics 365 Supply Chain Management with three locations. Two locations must use United States currency (USD) as the default currency. The third location must use Canadian currency (CAD).

One US facility and the Canadian facility must use advanced warehouse functionality. The other US facility must use basic warehousing.

You need to configure the legal entity, site, and warehouse architecture to meet the requirements.

Solution: Create two legal entities, one for the US facilities and one for the Canadian facility.

Does the solution meet the goal?

  1. Yes
  2. No

Answer(s): A


Reference:

https://stoneridgesoftware.com/warehouse-management-options-dynamics-365-operations/



DRAG DROP (Drag and Drop is not supported)

A graphic design school is implementing ERP by using Dynamics 365 Finance.

The school needs to provide operational training and online training for employees.

You need to identify the right type of instance for the situation.

Which instance type should you recommend? To answer, drag the appropriate instance types to the correct requirements. Each instance type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.

Note: Each correct selection is worth one point.

Select and Place:

  1. See Explanation section for answer.

Answer(s): A

Explanation:


Reference:

https://docs.microsoft.com/en-gb/dynamics365/business-central/admin-sandbox-environments



Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

A manufacturing company has multiple factories and distribution centers in remote areas where they have poor internet connectivity. The company is planning to implement Dynamics 365 Supply Chain Management.

The company's main priorities are uninterrupted factory and distribution center operations, master data management, financial global reporting, and integration with analytics tools.

You need to design the infrastructure.

Solution: Implement cross-premises Microsoft Azure virtual network between the distribution centers, factories, and the Microsoft data center.

Does the solution meet the goal?

  1. Yes
  2. No

Answer(s): A



A client plans to implement Dynamics 365 Finance.

The client is unsure whether to use a cloud-based or on-premises implementation.

For which scenario should the client install the on-premises version of the app?

  1. The client has integrations that depend on direct Microsoft SQL access.
  2. The client is concerned about their retail stores losing internet connection and not being able to process offline store transactions.
  3. The client needs to comply with federal regulations and keep their financial data at their headquarters location.
  4. The client already has a significant infrastructure investment.

Answer(s): C

Explanation:

On-premise is a great choice for those willing to have full control over their customers and operations data.
Some companies follow strict data regulations prohibiting to store data outside the company.
Note:
Why on-premises
With an on-premises deployment, existing data center investments can be leveraged. Customers can also configure their enterprise preferences to meet the regulatory and compliance needs of their business, comply with data sovereignty rules in regions where there are no Azure Data Centers, or ensure business continuity in areas with limited public infrastructure.
A customer's business data and processes are disconnected from the cloud and are stored and run locally in the customer's or their partner's data center. Some connectivity is required for system management and updates which are enabled through Microsoft Dynamics Lifecycle Services (LCS), a cloud-based application lifecycle management service. Customer data that is related to the configuration and application customization may be stored in the cloud.
For customers who choose to run finance and operations apps in their own data center, the on-premises deployment option will have a similar user-interface and application functionality as other deployment options.
However, customers must take on the following responsibilities:
Stand up their own infrastructure.
Configure their own high-availability and disaster recovery solutions.
Stand up sandbox environments.
Manage their infrastructure, including scheduling operating system updates.
Note: This question has the following correct answers:
* The client needs to comply with data sovereignty rules in a region where Microsoft Azure Data Centers are limited.
* The client needs to comply with federal regulations and keep their financial data at their headquarters location.
This question has the following incorrect answers:
* The client already has a significant infrastructure investment.
* The client has integrations that depend on direct Microsoft SQL access.
* The client is concerned about disaster recovery and high availability.
* The client is concerned about their retail stores losing internet connection and not being able to process offline store transactions.
* The client needs to be SOC 1 compliant
* The client wants direct access to production environments.
Incorrect:
* The client has integrations that depend on direct Microsoft SQL access.
Direct Microsoft SQL access can be provided through a Virtual machine in the cloud.
* The client is concerned about their retail stores losing internet connection and not being able to process offline store transactions.
Dynamics 365 Finance support asynchronous batch solutions.
* The client needs to be SOC 1 compliant
System and Organization Controls (SOC) 1 Type 2
SOC 1 Type 2 overview
System and Organization Controls (SOC) for Service Organizations are internal control reports created by the American Institute of Certified Public Accountants (AICPA). They're intended to examine services provided by a service organization so that end users can assess and address the risk associated with an outsourced service.


Reference:

https://go-erp.co.uk/2020/01/24/dynamics-365-cloud-on-premise-comparison/ https://learn.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/deployment/choose-deployment-type



Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.

After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.

A company is planning to implement Dynamics 365 Supply Chain Management with three locations. Two locations must use United States currency (USD) as the default currency. The third location must use Canadian currency (CAD).

One US facility and the Canadian facility must use advanced warehouse functionality. The other US facility must use basic warehousing.

You need to configure the legal entity, site, and warehouse architecture to meet the requirements.

Solution: Create one legal entity and differentiate capabilities by warehouse.

Does the solution meet the goal?

  1. Yes
  2. No

Answer(s): B

Explanation:

Instead create three legal entities, one for each facility.
Default currency is configured per legal entity. Advanced warehouse is configured per warehouse.



Viewing Page 5 of 42



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